<h1>Press Release: Roscas Building Financial Inclusion Platform in Mozambique</h1>Renew Capital invests in Roscas to expand their work providing financial products to underserved communities <a href="https://latest-api.renewcapital.com/uploads/2024_15_04_FINAL_Roscas_Press_Release_4dd5ecce27.pdf" target="_blank" rel="noopener noreferrer">Download the full press release</a>Maputo, Mozambique, April 15, 2024 — Financial inclusion remains a paramount global challenge. However, a Mozambican fintech startup,<a href="https://roscas.co.mz/">&nbsp;Roscas</a>, is addressing the problem by introducing digital solutions that empower individuals and communities across the country. Roscas aims to digitize traditional savings groups by integrating digital tools and financial products tailored to the informal sector's needs. <img src="/uploads/1000200717_788ce36d91.jpg" alt="Roscas team and founder posing in their office in Maputo, Mozambique.">With an estimated 85% of individuals engaged in informal sectors in sub-Saharan Africa, the demand for accessible financial security products like insurance and pensions has reached critical levels. Roscas bridges this gap, empowering individuals historically excluded from formal financial systems to access welfare products, such as insurance, capitalized savings and loans."At Roscas we are fueled by our vision to dismantle barriers not only to financial but also to economic inclusion, by equipping underserved communities with tools to shape their financial destinies," said José Samo Gudo, CEO and co-founder at Roscas. "The investment from Renew Capital Angels marks an exciting milestone in our journey, propelling us toward our vision of nurturing economic resilience and empowerment in Mozambique and sub-Saharan Africa."With a robust multichannel strategy embracing platforms such as WhatsApp, USSD, and mobile applications, Roscas aims to ensure its suite of financial products reaches its target audience with unparalleled ease."Renew Capital is happy to announce our first investment in Mozambique. The decision to invest in Roscas underscores the increasing acknowledgment of the role innovative financial technology solutions play in fostering economic growth. We are delighted to support the team in achieving their goal, enhancing their services, and broadening their impact,” says Licinio Chissano, investment and project manager at Renew Capital.&nbsp;

Renew Capital invests in Roscas, a fintech startup in Mozambique to enhance financial inclusion by digitizing savings groups and offering tailored financial products for underserved communities.

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Press Release: Roscas Building Financial Inclusion Platform in Mozambique

<h1>Secrets of Mozambique’s Momentum</h1><figure class="image"><img src="/uploads/Whats_App_Image_2024_07_22_at_2_50_32_PM_2_5ed5992460.jpeg" alt="High-rise buildings skyline in Maputo, Mozambique showcasing the city's urban growth"></figure><h2>Straight Talk About Mozambique's Complexity</h2>We’ve been hosting members of Renew Capital Angels Network this week in Maputo, Mozambique. This is my fourth trip to this amazing country. And when I think of Mozambique, I think of&nbsp;stunning beaches, an unfortunate reputation for corruption and the challenge of not speaking Portuguese. Also liquified natural gas, or&nbsp;LNG, comes to mind. My approach to trying to understand a bit about this complex and beautiful place involves trying to put my finger on what really drives its&nbsp;national identity, exploring its beautiful places and flavors and identifying areas where positive change is happening.&nbsp;Here is a bit of what we have pieced together from our conversations with people this week in Maputo and our desk research.Mozambique: The Hard Facts<ul><li>Demographics: More than 50% of the population is under 18. (<a href="https://www.unicef.org/mozambique/media/4501/file/The%20Situation%20of%20Children%20in%20Mozambique%202021.pdf">UNICEF</a>)</li><li>Literacy Rates:&nbsp;Overall literacy is&nbsp;47%, &nbsp; female literacy is 28% and male literacy is 60%. (<a href="https://www.usaid.gov/mozambique/education">USAID</a>)</li><li>Mobile Penetration: 55%. (<a href="https://www.statista.com/statistics/1253675/number-of-mobile-connections-mozambique/">Statista</a>)</li><li>Government Spending: 72% of tax revenue is consumed by the public wage bill. (<a href="https://www.bloomberg.com/news/articles/2024-07-16/mozambique-to-cut-5-000-ghost-workers-imf-says-after-warning">Bloomberg</a>)&nbsp;</li><li>Economic Growth: Projections exceed 6% for the next few years. (<a href="https://www.worldbank.org/en/country/mozambique/publication/mozambique-economic-update-9#:~:text=Growth%20is%20expected%20to%20accelerate,production%2C%20and%20high%20commodity%20prices.">World Bank</a>)</li><li>Inflation: Under control, with a stable currency. (<a href="https://tradingeconomics.com/mozambique/inflation-cpi">Trading Economics</a>)</li><li>Poverty: Depending upon your source 65-75% of the population lives below the poverty line and it’s gotten worse the last 10 years. (<a href="https://clubofmozambique.com/news/mozambique-65-of-population-lives-below-poverty-line-260369/">360 Mozambique</a>)</li></ul>National Identity: Unidad National&nbsp;Mozambique achieved independence from Portugal in 1975, but a subsequent 16-year civil war between two political groups, FRELIMO and RENAMO, hindered national progress. The war, driven by demands for leadership representation from the central and northern regions, underscored the need for inclusive governance. War sucks. A lot of people died. They don’t want to go back to all that. So today, the phrase "Unidade Nacional" (national unity) reflects the collective understanding that national progress and cohesion depend on shared leadership across all regions. This principle is a cornerstone in evaluating policies, initiatives and business ventures to ensure they align with the country's goals for a unified future​. And of course corruption is just part of the way things are done around here.&nbsp;<h2>Chapo’s Challenge: Can a Lawyer from Central Mozambique Chart a New Course?</h2>The national election is on October 9th, 2024. FRELIMO's presidential candidate, Daniel "Chapo," is the first since Mozambique's independence to have no military background. Yep – read that again. He’s a lawyer, born in Inhaminga in central Mozambique. Chapo's focus on national unity is significant – not sure yet what that means, but this is what the people say. He was a governor in Inhambane Province, near Maputo, until earlier in 2024 and he is known for improving healthcare and fostering trust. He is expected to win by a wide margin due to RENAMO’s current fragmentation. Supporters believe he will make progress in infrastructure and healthcare, strengthening the social contract. Critics assume he’ll be a puppet.Mozambique’s LNG Mirage: Is the Gas Boom a Bust?&nbsp;Here’s a brief timeline of LNG in Mozambique:2010-2013 - LNG Discovery - Mozambique discovered 150 trillion cubic feet of natural gas reserves. Subsequent concessions were sold to major organizations.<ul><li>Total's Onshore LNG Project: Expected to produce 13.1 million tons per year, but delayed due to insurgency and security issues. Force majeure declared in April 2021.</li><li>ExxonMobil's Rovuma LNG Project: Planned capacity of 15.2 million tons per year, with final investment decisions delayed due to security concerns.</li><li>Coral South Floating Production Facility (ENI): Capacity of 3.4 million tons per year, exports began in 2022.</li><li>2017 - Insurgency in Cabo Delgado: Began in 2017, causing significant delays and security issues.</li><li>2019 - Cyclone Kenneth: Devastated the economy and impacted LNG projects.</li></ul>2024 - Recent News:&nbsp;<ul><li>Mozambique's&nbsp;new sovereign wealth fund, part of the agreement with the IMF, aims to manage $91.7B from LNG exports over the next few decades, with a focus on transparency and governance. (<a href="https://www.bloomberg.com/news/articles/2024-03-12/mozambique-approves-wealth-fund-decree-to-govern-lng-billions">Bloomberg</a>)</li><li>Rwandan Security Involvement: Rwandan security company Isco Segurança has been hired to guard TotalEnergie’s $20B gas project. This move has sparked criticism over Rwanda's economic interests in Mozambique. (<a href="https://www.ft.com/content/d89e861c-3872-4649-afc5-9cb6f53a18d7">FT</a>)</li><li>Ghost Workers: Mozambique plans to remove 5,000 ghost workers, aiming to reduce public worker spending and unlock a $60M IMF fund. No wonder 72% of tax revenue is spent on public wages. (<a href="https://www.bloomberg.com/news/articles/2024-07-16/mozambique-to-cut-5-000-ghost-workers-imf-says-after-warning">Bloomberg</a>)</li></ul><h2>Mozambique’s Startup Ecosystem</h2>The startup ecosystem is fairly nascent. However, the discovery of natural gas reserves and rich mineral deposits and the country’s strategic location have positioned Mozambique as an interesting player to watch among Africa’s startup ecosystems.We that hear aquaculture, fintech and the energy sectors have seen some activity in recent years, but we mostly looked at deals in the logitech space. We saw some fintechs but they still have significant progress to make before they can compete with their counterparts in Nigeria or Kenya.More importantly,&nbsp;the government is modernizing its investment and banking regulations&nbsp;to create a more conducive investment environment. Read: it won’t take three years to get a license. Yeah…let’s see about that!If you’re looking for evidence that things are moving, the government's promotion of Small and Medium Enterprises (IPEME) is providing support to budding entrepreneurs. Although we couldn’t find many examples yet, I’m sure they’ll be sprouting up soon.&nbsp;Additionally, organizations like MozInnovation Lab and Standard Bank Incubator have been playing a crucial role in nurturing startups by offering mentorship, training and access to funding. Key sectors include agriculture, fintech, energy and health tech, so we should have plenty of pipeline to look at, right? Sidenote: a large investment group just told us they see only two to five legit deals per month.&nbsp;We need to get this ecosystem activated, ASAP!And for the challenges: The typical stuff - developing a regulatory environment, inadequate infrastructure including the internet and a pretty significant skills gap, in particular for tech-related fields. Nothing new.&nbsp;I’d conclude with one word: pipeline! We need more. We want more. Mozambique, you are beautiful. We see your potential. Let’s do this!Go Deeper on Mozambique?<ul><li><a href="https://www.linkedin.com/posts/renew-capital_mozambique-in-12-photos-activity-7219971399195455490-rlMD?utm_source=share&amp;utm_medium=member_desktop">Maputo in 12 photos</a></li><li><a href="https://latest-api.renewcapital.com/uploads/FINAL_Mozambique_Fact_Sheet_15e04085a9.pdf">Mozambique’s Startup Ecosystem Fact Sheet</a></li><li><a href="https://www.google.com/maps/placelists/list/0TKmqgP4OdVTRIUk3u2YUL4M8PE4-A">Maputo Startup Ecosystem Google Map</a></li></ul> If you are interested in entering Renew Capital’s pipeline, visit&nbsp;<a href="http://venturelab.renewcapital.com">venturelab.renewcapital.com.&nbsp;</a>And if you want to read more of our thoughts on other African Startup Ecosystems visit our&nbsp;<a href="https://www.renewcapital.com/newsroom/the-momentum-of-african-startup-ecosystems-in-a-snapshot">Ecosystem Fact Sheet webpage</a>.

Straight talk on Mozambique’s evolving startup scene, the impact of LNG and the journey toward national unity.

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Secrets of Mozambique’s Momentum

In this Q&amp;A with Licínio Chissano, project and investment manager at Renew Capital you will discover the creativity and vibrancy of the people in Mozambique, a country renowned for its beautiful weather and beaches. Expand your knowledge about this amazing country.<h1>How I See My Ecosystem: From Sunshine to Startups</h1>Unleashing Mozambique's Entrepreneurial Magic!Mozambique is renowned for its captivating landscapes, pristine beaches and rich cultural tapestry. In this interview with the project and investment manager at Renew Capital, Licínio Chissano, we delve into Mozambique’s entrepreneurial landscape and the promising industries that are driving its growth. Join us as we embark on a journey to uncover the innovative ideas and projects spearheaded by Mozambican entrepreneurs and how their efforts are shaping the trajectory of their nation's future.<figure class="image"><img src="/uploads/Aug_11_Ld_698f7f7ece.png"></figure>Q. Briefly tell us about your background in investment/career.A. I come from a diverse background in the investment and finance industry. I started my career in social investment consulting and later joined a commercial bank in Mozambique. Working in Maputo, the dynamic city that never sleeps, was an exciting change for me. However, after five years, I wanted new challenges and considered opportunities abroad. Then, I received a job offer from Renew Capital, a firm with experience across the continent. I enjoy helping entrepreneurs at different stages of their businesses and it's fulfilling to contribute to the country's investment landscape.Q. What makes Mozambique unique, why should someone visit?&nbsp;A. Mozambique is a beautiful country that boasts over 1,500 miles of stunning coastline, as well as picturesque mountains, waterfalls and rich biodiversity. However, what truly sets Mozambique apart is its people, who are hardworking, spirited and welcoming. From the bustling streets of Maputo to the tranquil provinces, their energy is infectious and they are always eager to learn and create. When you visit Mozambique, you can look forward to a warm welcome and plenty of sunshine. The country's rich culture and friendly people will leave a lasting impression on you and the cuisine is sure to delight your taste buds. Whether you're dining at a restaurant in Maputo or exploring beyond the city, you'll find a delicious variety of dishes.Q.What are the main industries and economic activities in Mozambique?A. Agriculture remains a significant pillar of the economy, with many provinces engaging in agricultural activities. However, the logistics sector is rapidly growing, with strategic investments in ports, railways and transportation infrastructure. The government recognizes the country's geographical advantage and aims to accelerate regional trade, making Mozambique a key player in commerce and transportation within the region. Additionally, commerce plays a vital role in people’s livelihoods. Given the dispersed population living outside major cities, e-commerce platforms have gained popularity, allowing people to buy and sell goods without the need to travel long distances to urban centers. This helps to bridge the gap between rural and urban areas, making commerce more accessible.&nbsp;Q.What’s excited you about the Mozambique ecosystem in recent years?A. What excites me about the Mozambique ecosystem in recent years is the growing potential in the fintech sector. While there are some fintech present in the market, most are not locally owned. This creates a unique opportunity for local entrepreneurs to step in and fill the gaps in financial services tailored to the Mozambican community. Despite facing challenges with regulatory compliance and securing investments, many startups are eager to provide innovative fintech solutions. These startups are responding to high demand for services not adequately offered by established players like telecom companies and traditional banks. One example is the lack of efficient digital platforms for the popular "ti ti" savings groups, which are prevalent throughout Mozambican society. Furthermore, the government and development partners are making efforts to facilitate the growth of the private sector and encourage startups. Initiatives like incubation programs in public universities and the establishment of science and technological parks show promise in nurturing homegrown talent and innovative ideas.&nbsp; Q.Why are you passionate about startups and entrepreneurship in Mozambique?A. Mozambicans are incredibly innovative and creative, always coming up with ideas that have the potential to transform into businesses. However, they often face challenges in accessing funding and resources to bring their ideas to life. Many startups struggle because they lack the necessary resources and support. This is where my passion lies – in connecting these talented entrepreneurs with opportunities and providing them with the guidance and assistance they need to thrive. I am also inspired by the honesty and openness of the entrepreneurs in Mozambique, who are not afraid to seek help and collaborate with others to grow their businesses. Their energy and determination motivate me to be a part of their journey and support them in any way I can. I firmly believe that the young generation in Mozambique has great potential and by supporting them and their ideas, we can contribute to the growth and prosperity of the country as a whole.&nbsp;